Govt in wait-and-watch mode on US tariff fallout

New Delhi: India is closely monitoring potential tariff differentials compared to other countries as a result of US reciprocal tariffs, but any contingency planning can be done only after assessing the full impact of the duties, officials said. Until then, the government will remain in a wait-and-watch mode, they added. "Today, on July 15, we are not in a position to guesstimate the differential tariff that is going to play out on August 1," one of the officials said.Meanwhile, Indian negotiators are in Washington for the fifth round of negotiations on the proposed bilateral trade agreement (BTA)."The negotiations are in progress as per the decision of the leaders and the terms of reference decided," the official said.The two aim to conclude the first tranche of the BTA by September.Explaining why a backup plan cannot be prepared without understanding the full effect of tariffs, the official said, "We have got tariff numbers for about 25 countries... The US has announced that they are going to do trade deals in two weeks. So, what do these deals lead to, and what will be the final spectrum of tariffs that will be rolled out on August 1?... Without understanding that, it will be very difficult to plan for a contingency plan."Another official said the government is in wait-and-watch mode.